Guides / Insulation

Insulation rebates 2026: what still pays after the tax credit ended

By Ionel Glogoveanu, editor. Every figure on this page was checked against the official source on the date shown.

There is no federal tax credit for insulation installed in 2026: the 25C credit — 30% of cost, up to $1,200 a year — covers only work placed in service by December 31, 2025. What pays now is rebate money. The federal HEEHR program (formerly HEAR) pays up to $1,600 for insulation, air sealing and ventilation to households at or below 150% of Area Median Income, where your state has launched it, and since May 29, 2026 it requires insulating before a heat pump. HOMES pays for whole-home savings at any income. Where neither is open, your utility is the next stop — in Utah, both major utilities pay per square foot.

The insulation money that exists in 2026

Is there still a tax credit for insulation? Not for 2026 work

The 25C Energy Efficient Home Improvement Credit paid 30% of the cost of insulation and air sealing materials, capped at $1,200 a year together with windows, doors and energy audits. The IRS states that the credit is allowed only for property placed in service through December 31, 2025 — the One Big Beautiful Bill Act ended it seven years early. The date that counts is when the insulation is installed, not when you bought it. Attic insulation blown in during January 2026 earns nothing on your 2026 return, and no “claim it in spring 2027” option exists. If the work was finished in 2025, you can still claim it on your 2025 return with Form 5695; extended 2025 returns are due October 15, 2026, and an amended return can generally add the credit within three years. The 25C credit was nonrefundable with no carryforward, so any amount above your 2025 tax bill is lost.

The federal insulation rebate: up to $1,600 through HEEHR

Insulation still has federal money, but it is a rebate run by your state, not a tax credit. The law behind HEEHR, 42 U.S.C. §18795a, sets a ceiling of $1,600 for insulation, air sealing and ventilation combined — one bucket, not $1,600 each — inside a $14,000 cap per household. Households below 80% of Area Median Income can have 100% of the cost covered; households between 80% and 150% get 50%; above 150%, HEEHR pays nothing. Windows and doors are not in the category. Two details matter for insulation: DOE says HEEHR rebates are paid at the point of sale, through a contractor or a retailer, and its Program Notice 26-2 now lets households claim insulation, air sealing and ventilation in increments, up to the ceiling, instead of in one project. The catch is geography: HEEHR exists only where your state has launched it.

Insulate first: the May 29, 2026 rule

DOE rewrote the federal electrification rebate in Program Notice 26-2, effective May 29, 2026. Besides renaming HEAR as HEEHR and ending rebates for replacing gas, oil or propane equipment, the notice requires homes to use rebates for insulation and air sealing before installing heating and cooling upgrades, unless they are already insulated and sealed to a level the state specifies and DOE approves. The stated reason is that a heat pump in a leaky house can raise energy bills instead of lowering them. States that had already launched had three months to comply; North Carolina, for example, applied the change on September 1, 2026 and now tells applicants that insulation and air sealing may be required alongside a heat pump project. For you, the order is fixed: price the envelope work first, then the equipment. Reservations approved under the old rules are still honored.

DIY insulation can earn a rebate — if your program allows it

Program Notice 26-2 encourages states to allow HEEHR rebates for do-it-yourself retail purchases and installations — everything except HVAC systems — where state and local building codes permit. That opens the door to buying insulation at a store and installing it yourself, with the rebate applied at the register. The door is not open everywhere: each state chooses its own retail pathways, and New Mexico, for one, requires a program-certified installer and does not pay for self-installed projects. Utility programs set their own rules. In Utah, Rocky Mountain Power pays self-installers a rebate on materials only, with the R-value and square footage shown on the receipt or packaging, and Enbridge Gas accepts self-installed attic, wall and floor insulation but requires an authorized contractor for air sealing and duct work. Before you load a cart, confirm that your program pays for DIY and which documents it needs.

HOMES: insulation as the path to a whole-home rebate

HOMES answers a different question from HEEHR: not what you install, but how much energy the whole house will save. The U.S. Department of Energy describes HOMES as a rebate of up to $8,000 at any income for projects with modeled savings of at least 20%, and lists insulation, air sealing and duct sealing among its pathways. In most homes, envelope work is the cheapest way to reach the 20% threshold, which is why assessors usually start in the attic. States set the final amounts and can go higher for lower-income households: Wisconsin pays up to $10,000 for 35% savings. HOMES is the only federal insulation money for households above 150% of Area Median Income. It cannot pay for the same upgrade as HEEHR: the law bars combining HEEHR with any other federal rebate for the same project, so you choose one per measure.

Utah insulation rebates in 2026

Utah’s federal rebates are on hold: the Office of Energy Development says DOE has not approved the state’s application. Utah insulation money in 2026 comes from the two big utilities, and a home served by both can apply to each. Rocky Mountain Power’s Wattsmart Homes program pays per square foot in existing single-family homes not built in the last ten years, with electric heat or central cooling serving at least 80% of the floor area; attics must start at R-19 or less and finish at R-49 or more; applications are due within 180 days, and approved rebates are issued within 14 business days. Enbridge Gas’s ThermWise program requires a final attic value between R-49 and R-60. Both utilities warn that amounts can change with notice.

Where insulation money stands in the states we have verified

• New Mexico — HEAR open: $1,600 for insulation and air sealing, below 80% AMI, certified installer required (verified September 26, 2026).
• North Carolina — Energy Saver North Carolina open statewide: HOMES up to $16,000 and HEAR up to $14,000, including up to $1,600 for insulation, ventilation and air sealing (verified September 26, 2026).
• Wisconsin — HOMES open at any income: up to $10,000 for 35%+ modeled savings (verified September 22, 2026).
• New York — homes that meet insulation and air sealing standards earn NYS Clean Heat’s higher Weatherized Tier; weatherization becomes a prerequisite by March 1, 2028 (verified September 22, 2026).
• Georgia and Michigan — whole-home programs open (Georgia’s HER through approved contractors; Michigan’s MiHER for low- and moderate-income residents) (verified September 26, 2026).
• California — single-family HEEHRA fully reserved since February 24, 2026; multifamily still open (verified September 26, 2026).
• Montana (on hold) — NorthWestern Energy pays its natural gas customers $0.55 per square foot to take a bare attic to R-49 and $0.60 for basement or crawlspace walls to R-19, for work completed and submitted by June 30, 2027 (verified September 27, 2026).
• Utah (on hold), and Florida, Illinois, Ohio, Pennsylvania, South Carolina, Texas and Virginia (not launched) — no federal insulation rebate yet; utility programs are the place to look.

Every other state: see the state-by-state registry, which says which rows we have verified.

How much insulation: ENERGY STAR’s recommended R-values

Rebates reward reaching a target, so know the target before you buy. These are ENERGY STAR’s recommended levels for retrofitting existing wood-framed homes. Your program’s own minimum overrides them: in Utah, both utilities require at least R-49 in the attic.

The mistakes still circulating in 2026

We read the pages that rank for insulation rebates before writing this one. The most expensive error is the tax credit that no longer exists. An insulation company’s guide, updated August 3, 2026, still tells readers that insulation bought in 2026 earns the 30% credit when they file in spring 2027, and that the credit runs through 2032; the IRS allows it only for work placed in service through December 31, 2025. The second is what gets left out: the $1,600 figure is easy to quote without its two conditions — it exists only in states that have launched HEEHR, and only for households at or below 150% of Area Median Income. The third is timing: guides written before May 29, 2026 could not know that federal HEEHR now pays for a heat pump only after the envelope, so they still treat insulation and heat pumps as separate projects. Each correction we publish is logged, with its official source, in our public corrections log.

Before you pay for insulation: what we’d verify

• The rebate, by name and amount, in writing — and whether it is applied at purchase or paid after you apply.
• The starting R-value, documented. Many programs pay only if the existing level is low (Rocky Mountain Power: attic at R-19 or less). Photograph the attic before work starts.
• The final R-value and square footage on the invoice or receipt — the two numbers every per-square-foot rebate is calculated from.
• Air sealing before insulation. Sealing the attic floor comes first; ask whether it is in the quote and whether it has its own rebate.
• Contractor or DIY? Confirm whether your program requires an authorized contractor for each measure before you buy materials.
• The application window. Rocky Mountain Power allows 180 days after installation; put the date in your calendar.

Sources and method

Every fact on this page was checked on September 26, 2026 (the Montana entry on September 27, on NorthWestern Energy’s insulation form 3747) against primary sources: the IRS Energy Efficient Home Improvement Credit page (the $1,200 cap and the December 31, 2025 end date), the statute 42 U.S.C. §18795a (the $1,600 ceiling, income tiers and the ban on combining federal rebates), DOE Program Notice 26-2 (insulate-first, incremental claims, DIY retail), the DOE Home Energy Rebates page (HOMES pathways and maximums), ENERGY STAR’s recommended R-values, North Carolina DEQ, and the Utah insulation pages of Rocky Mountain Power and Enbridge Gas. State details come from our individually verified state pages, each dated. Where published guides contradict these sources, we follow the official text and say so. This is general information, not tax advice.

Frequently asked questions

Is there a federal tax credit for insulation in 2026?

No. The 25C Energy Efficient Home Improvement Credit, which paid 30% of insulation and air sealing costs up to $1,200 a year, applies only to improvements placed in service through December 31, 2025. Insulation installed in 2026 earns no federal tax credit. Insulation finished in 2025 can still be claimed on the 2025 return with Form 5695.

How much is the federal insulation rebate in 2026?

Up to $1,600 for insulation, air sealing and ventilation combined, through HEEHR (the federal rebate formerly called HEAR). It covers 100% of costs for households below 80% of Area Median Income and 50% between 80% and 150%, within a $14,000 household cap. It exists only in states that have launched the program.

Do I have to insulate before I get a heat pump rebate?

Under the federal HEEHR program, yes. DOE Program Notice 26-2, effective May 29, 2026, requires homes to use rebates for insulation and air sealing before heating and cooling upgrades, unless the home already meets a DOE-approved, state-specified level. State and utility heat pump programs set their own rules.

Can I get a rebate for insulation I install myself?

Sometimes. DOE now encourages states to allow HEEHR rebates for do-it-yourself retail purchases, except HVAC, where codes allow — but each state decides; New Mexico requires a program-certified installer. In Utah, Rocky Mountain Power pays self-installers for materials only, and Enbridge Gas accepts self-installed attic, wall and floor insulation.

What insulation rebates are available in Utah?

Utility rebates, while the federal program is on hold. Rocky Mountain Power pays $0.10 per sq. ft. for attic insulation and up to $0.65 for wall or floor insulation in electrically heated homes. Enbridge Gas pays $0.32 per sq. ft. for Tier 1 attic insulation, $0.30 for walls and up to $850 for air sealing.

Can I combine a utility insulation rebate with the federal rebate?

The law bars combining HEEHR with any other federal grant or rebate for the same project, so HEEHR and HOMES cannot both pay for the same insulation. Utility and state rebates are not federal; DOE encourages states to stack HEEHR with other programs, and each program sets its own stacking rules.

What R-value should my attic have?

ENERGY STAR recommends R-60 for an uninsulated attic in climate zones 4 through 8, R-49 in zones 2 and 3, and R-30 in zone 1. Rebate programs often set their own floor: both Utah utilities require a final attic value of at least R-49.

Related guides

Insulation is now the first step toward federal heat pump money — read what replaced the heat pump tax credit for the rest of the federal picture. Check your state in the state-by-state registry, and subscribe to our verified deadline calendar so a rebate window does not close on you.